December 11, 2015 / 6:30 AM / 4 years ago

UPDATE 1-Felda Group to buy 37 pct of Eagle High in new deal-Rajawali exec

* Eagle High shares soar 8 pct after Rajawali comments

* Most of purchase likely via different Felda unit -Rajawali

* Felda Global may take less than 10 pct -Rajawali

* Felda Global says still evaluating possible new deal (Adds comment from Felda Global Ventures, share price)

By Cindy Silviana

JAKARTA, Dec 11 (Reuters) - Malaysia’s Felda Group still plans to buy 37 percent of PT Eagle High Plantations Tbk in a restructured deal, a managing director of the Indonesian firm’s parent company said, sending shares in Eagle High soaring.

The companies are finalising the price, Rajawali’s managing director Darjoto Setyawan told Reuters in a text message interview.

Last month, the Malaysian group’s main unit, Felda Global Ventures Holdings Bhd said it needed to rethink its planned purchase of a 37 percent stake in Eagle High for $680 million after its shareholders criticised the deal as too expensive.

The deal was set to be biggest acquisition so far for Felda Global, the world’s no.3 palm plantation operator, which has been looking to expand its landbank. Rajawali has been trying to raise money through asset sales.

Under the new deal, Felda Global may take less than 10 percent in Eagle High, with the remainder bought by Felda Investment, a separate unit of Felda Group.

In response to the Rajawali comments, Felda Global said in a statement that it was continuing to evaluate a possible different mode of investment in Eagle High and that an announcement would be made in 2016.

Shares of Eagle High jumped 8.1 percent in afternoon trade. Felda Global shares were up 4.4 percent. (Reporting by Cindy Silviana in Jakarta; Additional reporting by Praveen Menon in Kuala Lumpur; Writing by Eveline Danubrata; Editing by Miral Fahmy and Edwina Gibbs)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below